L3HARRIS TECHNOLOGIES, INC. (LHX): what the price assumes

boothcheck covers L3HARRIS TECHNOLOGIES, INC. (LHX) but does not put one priced-in number on it: here the defensible answer is the evidence rather than a point estimate. boothcheck publishes no house fair value, target price, or buy/sell rating. Narrative composed 2026-06-27.

Generated: 2026-08-31 · Source: https://boothcheck.com/report/LHX

Headline

What The Price Assumes (Inversion)

The assumption today's price embeds, recovered by inverting the valuation.

The operating-margin figure is value-band context at year 11: derived from the framework's value band, a separate calculation — not part of the priced-in solve.

The price sits below what even a 5%/yr operating-profit decline would warrant; the inversion reports a bound, not a solved growth path.

Solve inputs: computed at a 7.3% cost of capital with 4% terminal growth over a 5-year stage.

How unusual the bet is: within-range (limited comparison data)

Valuation X-Ray

Asset, earnings-power and peer-multiple models all land far below the price; ONLY the growth-DCF reaches it. The bet is durable compounding the static frames structurally cannot price (a moat/durability premium).

How the valuation models price the stock relative to the market price. Price/FV above 1.0 means the market pays more than that lens defends (expensive); at or below 1.0 the lens can defend the price.

Families that justify the price: Growth Families that call it expensive: Asset, Earnings, Relative

The models below discount at their own flat-beta convention rates (cost of equity 9.3%, WACC 8.5%); the inversion above states its own rate.

Per-Model Detail (n=15)

Economic-Unit Decomposition (Sum Of The Parts)

One or more material disclosed units has unresolved economics. Unknown/general is not evidence of homogeneity: segment SOTP is primary but incomplete, consolidated cash flow may remain only a secondary cross-check when every unit shares an enterprise basis, and one sector multiple or target margin is withheld.

No total common-equity value is stated. One or more material units lack a supported unit value. The displayed values are an indicative subtotal; consolidated debt and cash cannot be applied to a fraction of the company.

Solvency

Interest expense is not separately reported in the latest filings, so interest coverage cannot be computed.

Bullet Takeaways

• L3Harris is a four-segment defense prime where the spine is communications, mission systems, and space-and-airborne electronics, with the Aerojet Rocketdyne propulsion business it bought in 2023 now the fastest-growing piece against a backdrop of missile-defense demand.
• The central risk is concentration: the 10-K states the company is "highly dependent on revenue from U.S. Government customers, primarily defense-related programs with the DoW", so a budget continuing-resolution or program cancellation hits the whole book at once.
• The next markers are the planned IPO of the missile business and quarterly print cadence; FY2026 EPS guidance was raised to $11.40 to $11.60 after Q1, so watch whether the order intake keeps the two-times-revenue backlog growing.

Bull Case

Start with where the money has been moving. Revenue grew over $600 million in the most recent quarter, about 15% organically, and management lifted full-year EPS guidance to $11.40 to $11.60 from $11.30 to $11.50. That is not a company coasting on a fixed government budget line. It is one whose order book is filling faster than it can recognize the revenue, and the gap between bookings and recognition is the bull case in one sentence.

The mechanism is backlog. The FY2025 10-K reports contractual backlog of "$38.7 billion, of which $26.9 billion was funded backlog", and on the Q1 call management put total backlog at over $40 billion, roughly twice annual revenue. Backlog at that depth is what lets a defense prime forecast with confidence: the 10-K expects to recognize about 45% of the contractual backlog by the end of fiscal 2026 and about 70% by the end of fiscal 2027. The work is already signed; execution, not demand, is the variable. Inside that book, the segments are tilting toward the parts the market wants most. The Aerojet Rocketdyne segment "includes missile solutions with propulsion technologies for strategic defense", and it is the smallest segment at roughly 13% of the mix today, which is exactly why it matters: propulsion is the supply bottleneck in a missile-restocking cycle, and a small, fast-growing segment compounds harder than a large mature one. Communications, the legacy core, is improving on its own terms, with the 10-K noting CS segment operating income rose in fiscal 2025 "primarily due to LHX NeXt driven cost savings", the internal program management runs to take cost out of the merged Harris and L3 footprint.

The capital story reinforces the operating one. Share count has been drifting down at roughly 0.9% a year, so per-share figures get a tailwind without management having to manufacture one, and the propulsion business is being teed up for an IPO that would surface a value the consolidated multiple buries. The competitive set is selective by design. The peer cohort here runs to aerospace and defense names like HEICO, AAR, Garmin, and StandardAero, but L3Harris occupies a specific niche: cryptographic hardware, resilient communications, and space sensing, the unglamorous electronics layer that sits inside almost every missile-defense architecture rather than competing to build the interceptor itself. That positioning is why the same Golden Dome missile-defense push that lifts the primes lifts L3Harris regardless of which platform wins, and it is the durable version of the bull thesis.

Bear Case

The whole thesis rests on one revenue stream, and the bear case starts by naming it. The price today pays for the missile-defense and resilient-communications narrative to keep building, but that narrative depends entirely on a single customer whose budget is set by Congress. The 10-K is blunt: the company is "highly dependent on revenue from U.S. Government customers, primarily defense-related programs with the DoW", and it adds that "the U.S. Government may choose to use other contractors as part of competitive bidding". A continuing resolution, a program restructuring, or a shift in procurement priorities does not trim one segment; it reprices the entire book. The most fragile assumption baked into the price is that defense spending growth, and L3Harris's share of it, both hold for years, not quarters.

Run the price against what the business has actually demonstrated and the stretch shows. The market is paying roughly 16 times company-wide operating income, and at today's price the embedded assumption is modest on rate but demanding on duration: the company-wide operating profit has to be sustained, not accelerated, but sustained for a long stretch at a margin the business has not historically widened. The company earns about a 10% operating margin today. The price needs that to hold while the asset-value and earnings-power lenses both read the stock as expensive: the price sits roughly three times above where book-value-plus-profitability methods and the pure earnings-power read land. Only the peer-multiple and forward-growth lenses defend the price, and they defend it precisely because they credit growth and a sector multiple held flat. If the growth fades or the sector multiple compresses, the static methods are the floor, and that floor is far below today's price.

The balance sheet is the second pressure point. Net debt sits around $9.2 billion, roughly 2.3 times trailing operating income, a legacy of the L3 merger and the Aerojet acquisition. That is serviceable while the order book grows and cash converts, but it removes the cushion. The 10-K notes interest expense is not separately broken out in a way that lets coverage be computed cleanly, which is itself worth flagging: a defense prime carrying this much debt into a higher-rate environment has less room to absorb a program slip or a working-capital swing than the backlog headline suggests. The bull points to a two-times-revenue backlog; the bear points out that backlog is a memorandum of future work, not cash in hand, and the cash still has to be earned program by program against fixed-price contracts where the cost overruns land on L3Harris, not the customer.

Valuation

What the price is paying for is duration, not acceleration. At today's level the market values L3Harris at roughly 16 times company-wide operating income, and inverting that price points to a company-wide operating profit path of about negative 2% a year over a five-year window, which sounds bearish until you read it correctly: the near-term pace is within what the company has recently delivered, and the demand is on how LONG that steady profitability must persist, not on a heroic growth rate. The bet is endurance of a mature, government-funded earnings stream, priced in the lower half of the defense-peer multiple range.

The methods split cleanly into two camps, and the split is the whole story. The forward-growth lens, built on discounted cash flow and an exit multiple, lands essentially on top of the price: the DCF perpetual-growth model reaches it on a roughly 6% growth assumption and the exit-multiple model gets there holding today's EV/EBITDA flat for the forecast. The peer-multiple lens agrees, anchoring on a roughly 22-times sector P/E. But the asset-value and earnings-power lenses say expensive, by a wide margin. The pure earnings-power read, which capitalizes normalized operating profit with no growth credit, sits far below the price, and the book-value-plus-profitability methods land near $100 a share against a market price near $295 (June 27, 2026). The reason is visible in the inputs: return on equity around 8.8% sits just under the cost of equity near 9.3%, so the excess-return methods generate almost no premium over book value of $104.63 a share. Translated, the static methods say the demonstrated economics support roughly book value, and everything above that is the market paying for growth and a sector multiple to hold.

Cohort position sharpens it. The reported peer set, anchored by HEICO, AAR, and StandardAero on the aerospace-and-defense aftermarket side and Boeing on the platform side, trades on the same forward-demand premium, so L3Harris is not an outlier within its cohort; it is mid-pack on a sector-wide bet. Solvency is the constraint to weigh against the optionality. Net debt of about $9.2 billion, roughly 2.3 times operating income, with liquid assets of only $590 million, means the company carries the missile-restocking cycle on a balance sheet that has limited slack. The funded portion of backlog, $26.9 billion of the $38.7 billion total per the 10-K, is the real downside support: that is work the government has appropriated money for, and it is the part of the order book that does not depend on next year's budget fight.

Catalysts

The Q1 FY2026 print was the recent catalyst and it cut in the bull's favor. EPS came in at $2.72 against a $2.52 consensus, and revenue of $5.7 billion beat the roughly $5.43 billion expected, a beat driven by about 15% organic growth. Management raised full-year revenue guidance to a $23 to $23.5 billion range and EPS guidance to $11.40 to $11.60, and emphasized that backlog now runs to roughly twice annual revenue. The strategic framing pointed at space sensing and missile defense, aircraft ISR missionization, resilient communications, and missiles and munitions as the priority growth lanes.

The structural catalyst ahead is the planned IPO of the missile-solutions business, which management has flagged under the name Axyv, alongside a $1 billion Department of War investment in that area. A separate listing of the propulsion and missile unit would surface a standalone value for the segment that is currently buried inside the consolidated multiple, and it is the clearest near-term path to closing the gap between the static methods and the price if the spun unit prices at a growth multiple. Sentiment has tracked the missile-defense theme: the stock carries a median Wall Street price target of $390 with 15 buy ratings against six holds and no sells, and the Golden Dome missile-defense initiative has been the recurring upgrade driver, with L3Harris positioned in the secure-communications, cryptographic-hardware, and space-sensing layers of that architecture rather than as a platform prime. The watch items are concrete: execution on the two-times-revenue backlog, the timing and pricing of the missile-business IPO, and whether the federal budget path that funds Golden Dome survives the appropriations process intact.

Peer Cohorts (Per Segment, With Filing Citations)

CS (Communication Systems) (reported)

• GD (GENERAL DYNAMICS CORPORATION)
• FY2025 10-K: …Powder propellant capacity; and continued advancement in solid rocket motor production. These initiatives will strengthen supply chain resiliency and support the full lifecycle of critical defense systems. Revenue for the Combat Systems segment was 17% of our consolidated revenue in 2025, 19% in 2024 and 20% in 2023.…
• FY2025 10-K: …and technology spending in recent years and a shift to the rapid development of solutions to meet the ever-changing information-systems and mission-support needs of these customers. GDIT and Mission Systems share a common defense, intelligence and federal civilian customer base and, when appropriate, go to market…
• LDOS (Leidos Holdings, Inc.)
• FY2025 10-K: …or networks or those of our customers, impair our ability to provide services to our customers and may jeopardize the security of data collected, stored, transmitted or otherwise processed through our information technology infrastructure, systems and networks. As a result, we could be exposed to claims, fines,…
• FY2025 10-K: …in response to considerations relating to climate change. Customer systems failures could damage our reputation and adversely affect our revenues and profitability. Many of the systems and networks that we develop, install and maintain for our customers involve managing and protecting personal information and…
• MSI (MOTOROLA SOLUTIONS, INC.)
• FY2025 10-K: …upon transfer of devices to reseller partners, rather than the end-customer, except for limited consignment arrangements. Provisions for returns and reseller discounts are made on a portfolio basis using historical data. The Products and Systems Integration segment includes both customized communications systems and…
• FY2025 10-K: …segment's net sales were $4.4 billion, representing 38% of our consolidated net sales. MCN MCN services include support and managed services, which offer a broad continuum of support for our customers. Support services include repair and replacement, technical support and preventative maintenance, and more advanced…
• VSAT (VIASAT INC)
• FY2025 10-K: …advanced features of our antenna systems as compared to our competitors' offerings; • our holistic suite of offerings, including our ability to offer bundled complex and complementary services, products and solutions; and • the overall cost-effectiveness of our communications systems, products and services. While we…
• FY2025 10-K: …in this report. Communication Services Our communication services segment provides a wide range of broadband and narrowband communications solutions across government and commercial mobility markets, as well as for residential and enterprise fixed broadband customers. In addition, this segment includes the…
• IRDM (Iridium Communications Inc.)
• FY2025 10-K: …of an aircraft's position and mission-critical condition data to the ground and CPDLC for clearance and information services. We provide critical communications applications for numerous airlines and air transport customers, including Hawaiian Airlines, United Airlines, UPS, FedEx, Cathay Pacific Airways, Delta…
• FY2025 10-K: …systems is installed on a vessel, it often generates a multi-year recurring revenue stream from the customer, particularly in the context of mandatory safety systems, such as Iridium Certus GMDSS. To take advantage of this revenue potential, from time to time, we may offer promotions or rebates to accelerate new…
• CACI (CACI International Inc)
• FY2025 10-K: …the government's satisfaction; • require us to disclose and certify cost and pricing data in connection with contract negotiations; and • require us to prevent unauthorized access to classified information, covered defense information, and controlled unclassified information. Our failure to comply with these or other…
• FY2025 10-K: …needs. Our proven Expertise and Technology and strong record of program delivery have enabled us to compete for and secure new customers and contracts, win repeat business, and build and maintain long-term customer relationships. We seek competitive business opportunities and have built our operations to support…
• SAIC (Science Applications International Corporation)
• FY2025 10-K: …by customers and partners. Repeatable Methodologies and Certified Processes. Our technical excellence is driven by our proven, repeatable, disciplined processes for management, engineering, technical support and services. We deploy our tools and processes enterprise-wide and emphasize a consistent approach to…
• FY2025 10-K: …Condition and Results of Operations" in Part II, Item 7 of this report. Competition Competition for contracts is intense, and we often compete against a large number of established multinational companies, which may have greater name recognition, financial resources and larger technical staffs than we do. We also…

IMS (Integrated Mission Systems) (reported)

• NOC (NORTHROP GRUMMAN CORP /DE/)
• FY2025 10-K: …an open architecture system that seamlessly integrates sensors and effectors to deliver among the most advanced C2 systems for joint and coalition forces; • Medium (30mm and 20mm) and Large (120mm) caliber tactical and training ammunition production; • Guided Multiple Launch Rocket System (GMLRS) propulsion and…
• FY2025 10-K: …(EO/IR) and acoustic sensors; command, control, communications and computers, intelligence, surveillance and reconnaissance (C4ISR) systems; electronic warfare systems; advanced communications and network systems; advanced microelectronics; navigation and positioning sensors; maritime power, propulsion and payload…
• GD (GENERAL DYNAMICS CORPORATION)
• FY2025 10-K: …and technology spending in recent years and a shift to the rapid development of solutions to meet the ever-changing information-systems and mission-support needs of these customers. GDIT and Mission Systems share a common defense, intelligence and federal civilian customer base and, when appropriate, go to market…
• FY2025 10-K: …Powder propellant capacity; and continued advancement in solid rocket motor production. These initiatives will strengthen supply chain resiliency and support the full lifecycle of critical defense systems. Revenue for the Combat Systems segment was 17% of our consolidated revenue in 2025, 19% in 2024 and 20% in 2023.…
• LDOS (Leidos Holdings, Inc.)
• FY2025 10-K: …more than 120 countries, including people scanners, computed tomography carry-on baggage scanners, checked baggage scanners, and explosive trace detectors. We are also the primary supplier to CBP and other 4 Leidos Holdings, Inc. Annual Report Table of Contents PART I international customers of mobile, non-intrusive…
• FY2025 10-K: …or networks or those of our customers, impair our ability to provide services to our customers and may jeopardize the security of data collected, stored, transmitted or otherwise processed through our information technology infrastructure, systems and networks. As a result, we could be exposed to claims, fines,…
• LMT (LOCKHEED MARTIN CORPORATION)
• FY2025 10-K: …• Training, logistics and simulation (TLS) programs such as those providing sustainment services and programs that provide simulators and associated training to U.S. military and foreign government customers. Effective January 2026, the IWSS and C6ISR lines of business within RMS were restructured and renamed…
• FY2025 10-K: …at very long range and produced for the U.S. Air Force, U.S. Navy, and international customers. Hellfire and JAGM are air-to-ground missile used on rotary and fixed-wing aircraft, which is produced for the U.S. Army, Navy, Marine Corps and international customers. • The Javelin program, which is a one-person portable…
• RTX (RTX CORPORATION)
• FY2025 10-K: …Collins supports government and defense customer missions by providing systems solutions for connected battlespace, test and training range systems, crew escape systems, and simulation and training. Pratt & Whitney is among the world's leading suppliers of aircraft engines for commercial, military, business jet, and…
• FY2025 10-K: …Guidance Enhanced Missiles (GEM-T) and Patriot launchers for international customers and the U.S. Army, $2.1 billion to provide AMRAAM to the U.S. Air Force, U.S. Navy, and international customers, $1.5 billion for low-rate initial production (LRIP) of LTAMDS for the U.S. Army and Poland, $1.2 billion for Iron Dome…
• HII (HUNTINGTON INGALLS INDUSTRIES, INC.)
• FY2025 10-K: …estimated using a most likely amount approach. Estimated revenues represent those amounts for which the Company believes a significant reversal of revenue is not probable. The Company recognizes revenues related to shipbuilding contracts as it satisfies the related performance obligations over time using a…
• FY2025 10-K: …segment provides a wide range of services and products, including command, control, computers, communications, cyber, intelligence, surveillance, and reconnaissance systems and operations; the application of artificial intelligence and machine learning to battlefield decisions; defense and offensive cyberspace 75…
• CACI (CACI International Inc)
• FY2025 10-K: …omissions liability insurance may be inadequate to compensate us for all the damages that we might incur. Any such event could also cause serious damage to our reputation and prevent us from having access to or being eligible for further work on such sensitive systems for U.S. government customers. In addition, in…
• FY2025 10-K: …the government's satisfaction; • require us to disclose and certify cost and pricing data in connection with contract negotiations; and • require us to prevent unauthorized access to classified information, covered defense information, and controlled unclassified information. Our failure to comply with these or other…

SAS (Space & Airborne Systems) (reported)

• NOC (NORTHROP GRUMMAN CORP /DE/)
• FY2025 10-K: …is the Multi-role Electronically Scanned Array (MESA) radar which enables 360 degree long range advanced air moving target indicator (AMTI) capabilities for Battle Management, Command and Control, and Maritime Surveillance; • Battlefield Airborne Communications Node (BACN), one of the first airborne gateway systems…
• FY2025 10-K: …(EO/IR) and acoustic sensors; command, control, communications and computers, intelligence, surveillance and reconnaissance (C4ISR) systems; electronic warfare systems; advanced communications and network systems; advanced microelectronics; navigation and positioning sensors; maritime power, propulsion and payload…
• LMT (LOCKHEED MARTIN CORPORATION)
• FY2025 10-K: …• Training, logistics and simulation (TLS) programs such as those providing sustainment services and programs that provide simulators and associated training to U.S. military and foreign government customers. Effective January 2026, the IWSS and C6ISR lines of business within RMS were restructured and renamed…
• FY2025 10-K: …2023-01-01 2023-12-31 0000936468 us-gaap:OperatingSegmentsMember us-gaap:FixedPriceContractMember lmt:MissilesAndFireControlMember 2023-01-01 2023-12-31 0000936468 us-gaap:OperatingSegmentsMember us-gaap:FixedPriceContractMember lmt:RotaryAndMissionSystemsMember 2023-01-01 2023-12-31 0000936468…
• RTX (RTX CORPORATION)
• FY2025 10-K: …Missile (ESSM) programs, SPY-6 radar programs, and certain classified programs. These increases were partially offset by lower net sales of $0.3 billion within air and space defense systems, primarily driven by lower development program volume partially offset by higher net sales on advanced medium-range air-to-air…
• FY2025 10-K: …command and control and weapons including classified naval radars, the Next Generation Jammer (NGJ), shipboard missiles including the Tomahawk and Standard Missile 6 (SM-6), air-to-air missiles such as the AIM-9X SIDEWINDER missile, and integrated systems such as the SPY-6 radar. In addition, Raytheon provides…
• GD (GENERAL DYNAMICS CORPORATION)
• FY2025 10-K: …while offering customers options to reduce or eliminate their carbon footprints. Gulfstream and Jet Aviation have been at the forefront of the industry by adopting and expanding the availability of sustainable aviation fuel (SAF), which achieves as much as an 80% reduction in carbon dioxide emissions per gallon over…
• FY2025 10-K: …elements of advanced resilient radio frequency (RF) to address battlefield realities such as jamming, spoofing, cyberattacks and lack of ground connectivity. Given our deep product innovation experience, we were selected to build the Next Generation Survival radio for the U.S. Joint Forces. For the Canadian Army, we…
• LDOS (Leidos Holdings, Inc.)
• FY2025 10-K: …more than 120 countries, including people scanners, computed tomography carry-on baggage scanners, checked baggage scanners, and explosive trace detectors. We are also the primary supplier to CBP and other 4 Leidos Holdings, Inc. Annual Report Table of Contents PART I international customers of mobile, non-intrusive…
• FY2025 10-K: …with the remaining attributable to international customers, including the UK Ministry of Defence, the Australian Department of Defence, NATO and customers across a variety of commercial markets. Within the U.S. government, our revenues are diversified across many agencies, including various intelligence agencies, the…
• BAH (BOOZ ALLEN HAMILTON HOLDING CORPORATION)
• FY2025 10-K: …and product offerings, we believe we are creating sustainable quality growth for the Company. Our Core Technology, Expertise, and Innovation Our technologists and mission experts identify, assess, build, and deploy technology solutions to advance and protect the nation using AI, cyber, and other cutting-edge…
• FY2025 10-K: "SOFA") to U.S. and non-U.S. government customers. 4 Table of Contents Intelligence Customers We deliver innovative, highly technical capabilities and solutions that directly impact core national security missions across the Intelligence Community and national cyber mission providers. We leverage our knowledge of the…

AR (Aerojet Rocketdyne) (reported)

• LMT (LOCKHEED MARTIN CORPORATION)
• FY2025 10-K: …at very long range and produced for the U.S. Air Force, U.S. Navy, and international customers. Hellfire and JAGM are air-to-ground missile used on rotary and fixed-wing aircraft, which is produced for the U.S. Army, Navy, Marine Corps and international customers. • The Javelin program, which is a one-person portable…
• FY2025 10-K: …JASSM, LRASM, GMLRS and PrSM). Backlog Backlog increased in 2025 compared to 2024 primarily due to higher orders on JASSM, LRASM, PAC-3 and Apache programs. Rotary and Mission Systems RMS designs, manufactures, services and supports various military and commercial helicopters, surface ships, sea and land-based…
• RTX (RTX CORPORATION)
• FY2025 10-K: …of War (DoW) (formerly referred to as the U.S. Department of Defense), including the U.S. Navy, U.S. Army, Missile Defense Agency, U.S. Air Force, and U.S. Space Force, as well as programs with U.S. federal civil customers, and other international and classified customers. In 2025, Raytheon achieved key advancements…
• FY2025 10-K: …command and control and weapons including classified naval radars, the Next Generation Jammer (NGJ), shipboard missiles including the Tomahawk and Standard Missile 6 (SM-6), air-to-air missiles such as the AIM-9X SIDEWINDER missile, and integrated systems such as the SPY-6 radar. In addition, Raytheon provides…
• NOC (NORTHROP GRUMMAN CORP /DE/)
• FY2025 10-K: …(EO/IR) and acoustic sensors; command, control, communications and computers, intelligence, surveillance and reconnaissance (C4ISR) systems; electronic warfare systems; advanced communications and network systems; advanced microelectronics; navigation and positioning sensors; maritime power, propulsion and payload…
• FY2025 10-K: …is the Multi-role Electronically Scanned Array (MESA) radar which enables 360 degree long range advanced air moving target indicator (AMTI) capabilities for Battle Management, Command and Control, and Maritime Surveillance; • Battlefield Airborne Communications Node (BACN), one of the first airborne gateway systems…
• BWXT (BWX Technologies Inc)
• FY2025 10-K: …of maintenance outages and the cyclical nature of capital expenditures and major refurbishments for nuclear utility customers, principally in the Canadian market, which could cause variability in our financial results. 2 Table of Contents Acquisitions Aerojet Ordnance Tennessee, Inc. On January 3, 2025, we completed…
• FY2025 10-K: …with manufacturing integration. This segment's capabilities include: • steam generation and separation equipment design and development; • thermal-hydraulic design of reactor plant components; • in-plant inspection, maintenance and modification services; • nuclear component modification and replacement; • commercial…
• KTOS (Kratos Defense & Security Solutions, Inc.)
• FY2025 10-K: …commercial customers. Improve operating margins. We believe that we have opportunities to increase our operating margins and improve profitability in the future as we transition from certain development programs, which typically generate inherently lower margins, to production programs, which typically generate…
• FY2025 10-K: …property and past performance qualifications and by offering a wider range of comprehensive low-cost technology leading and proven products and solutions compared to our competitors. In regard to areas of specialization, our product and solution offerings include the manufacturing of specialized defense electronics;…
• AVAV (AEROVIRONMENT, INC.)
• FY2025 10-K: …growth platforms in the future, creating additional market opportunities. Effective May 1, 2025, we operate our business in two reportable segments: (1) Autonomous Systems and (2) Space, Cyber and Directed Energy. 3 Table of Contents ​ Autonomous Systems ​ Uncrewed Aircraft Systems ("UAS"). Our family of uncrewed…
• FY2025 10-K: …include robotics and robotics systems autonomy; modular open systems architecture; sensor design, development, miniaturization and integration; embedded software and firmware; miniature, low power, secure wireless digital communications and networks; lightweight aerostructures; high-altitude systems design,…

Methodology Note

• Priced-in inversion: the valuation is inverted on the current price to recover the operating-income growth, duration, and steady-state margin the price embeds (ROE for financials, FFO growth for REITs).
• Valuation x-ray: the valuation models, grouped into four families (asset, earnings, relative, growth). Each model is expressed as a price/FV ratio (distance from price), not a point fair-value estimate. The spread across families is the disagreement.
• Economic-unit decomposition (SOTP): each disclosed business unit is assigned its native valuation basis before any multiple is applied. Operating units are valued on enterprise value; funded financial units are valued on their own common equity, because their borrowings fund earning assets rather than levering the parent. A company total is stated only once every material unit carries a supported value and the parent capital bridge reconciles.
• Solvency: net cash/debt, net-debt-to-NOPAT, interest coverage, and share-count CAGR from EDGAR financials (net debt / FFO and fixed-charge coverage for REITs; regulatory-capital framing for financials).
• Peer cohorts: per-segment comparables with deep-linkable SEC filing citations.

Fundamentals sourced from SEC EDGAR filings. Current price from Databento. The priced-in inversion and valuation x-ray are computed by the boothcheck engine; narrative composed by AI from the structured data.